Actuarial Fiscal Note
Date Requested:February 17, 2015
Time Requested:01:33 PM |
| Agency: |
Consolidated Public Retirement Board |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3164 |
Introduced |
HB2812 |
|
|---|
| CBD Subject: |
Retirement |
|---|
|
Retirement Systems Impacted by Legislation:
PERS
FUND(S):
PERS 2510
Sources of Revenue:
Other Fund State and Local Govts
Legislation creates:
Neither Program nor Fund
Actuarial Note Summary
Impact this measure will have on the liabilities and contributions associated with the retirement system(s).
The bill defines certain subsistance allowance payments for DNR officers as PERS pension inclome if paid prior to July 1, 2015. Such amounts have been included in current PERS actuarial valuations and does not increase plan benefits.
Fiscal Detail of Actuarial Impact
Impact on current benefit costs, prior service benefit costs and ongoing contribution requirements following full implementation.
| Impact On |
Following Full Implementation |
| Increase in Unfunded Actuarial Accrued Liability |
Initial Impact on Annual Contribution Requirement of System(s) |
Contribution Increase as a Percentage of Annual Payroll |
| Total Annual Costs |
$0.00 |
$0.00 |
0.00 % |
| Normal Cost of System |
N/A |
$0.00 |
0.00 % |
| Past Service Liabilities |
$0.00 |
$0.00 |
0.00 % |
Fiscal Year Past Service
Amortization Period Ends |
N/A |
|
N/A |
Explanation of above Actuarial estimates:
The Bill clarifies the inclusion of certain subsistence allowance payments in PERS compension for DNR officers for payments before July 1, 2015. Such payments were included in compensation for actuarial valulation purposes and therefore do not change either the Normal Cost nor Actuarial Accrued Liabilities amounts. This change shall have a minor impact on a limited number of retirees FAP at retirement.
Analysis of Impact on Public Pension Policy:
Lines up DNR officers income for subsistence allowance with other public safety officers.
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The bill defines certain subsistance allowance payments for DNR officers as PERS pension inclome if paid prior to July 1, 2015. Such amounts have been included in current PERS actuarial valuations and does not increase plan benefits.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2015
Increase/Decrease
(use"-") |
2016
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above Fiscal Note estimates (include possible long-range effect):
The Bill clarifies the inclusion of certain subsistence allowance payments in PERS compension for DNR officers for payments before July 1, 2015. Such payments were included in compensation for actuarial valulation purposes and therefore do not change either the Normal Cost nor Actuarial Accrued Liabilities amounts. This change shall have a minor impact on a limited number of retirees FAP at retirement.
Memorandum
Lines up DNR officers income for subsistence allowance with other public safety officers.
Person submitting Fiscal Note: Harry W. Mandel, Board Actuary, MAAA, MSPA, EA
Email Address: harry.w.mandel@wv.gov